Damage Payments for Services Performed Before Loyalty Oath is Signed - AM-P196-21
Based upon legal requirements, taking the State Oath of Allegiance is a requirement of all prospective employees before commencing the duties of their University employment. It is the continuing responsibility of those involved in the hiring process to obtain properly executed oaths from all appointees and employees (except Aliens) prior to the time they commence University service.
It is the policy of the University of California to make a “Damage Payment” to an employee who, without knowledge of the State Oath of Allegiance requirement, would perform services for the University prior to signing the State Oath of Allegiance. A “Damage Payment” constitutes a settlement of a claim by an employee based upon services rendered.
This policy provides the accounting, payroll and tax procedures for processing such a payment. Damages may be claimed where all of the following conditions are met:
- The employee entered into University employment in good faith, with no knowledge of the State Oath of Allegiance.
- The employee would have executed the State Oath of Allegiance prior to commencing University employment had the University advised the employee of the requirement to sign the Oath.
- The employee, in fact, signed the State Oath of Allegiance upon learning of the requirement.
The following procedures are to be followed before a claim for damage payment can be settled:
- Employee: Sign the Oath of Allegience. Review, complete and sign the Damage Payment Release form. Provide the form to your department representative.
- Department: Complete the Damage Payment Request webform and attach the employee's signed Damage Payment Release.
- Controller: Review and sign the employee's request for a damage payment. Note: Any claims covering a period of 120 days or more must be approved by the Chancellor.
- Payroll Office: Review the claim for completeness and appropriate approval; then, process the payment. The deductions should be made for appropriate federal and state income tax an FICA. The payment is subject to worker’s compensation insurance and unemployment insurance. Note: any contributions made by the employee to UCRP should be returned to the employee; someone who qualifies for a damage payment does not meet the UCRP definition of “eligible employee”. Retain a copy of the Damage Payment Report in the employee’s payroll file at the UCM Payroll Servcies office.
Refer to AM-P196-21: Damage Payments for Services Performed Before Loyalty Oath is Signed for more details.
For assistance, please contact Payroll Services at email@example.com with “Damage Payment” on the subject line.